Government to end contracted-out National Insurance contributions
03 Mar 2016
From 6 April 2016, the end of contracted-out National Insurance contributions (NICs) will result in an increased rate of NIC deductions from pay and the introduction of a new single-tier state pension
Staff who are members of a University pension scheme pay NICs at the contracted-out rate. The government is ending contracting-out and from 6 April 2016, the rate of NICs deducted from pay will increase by 1.4% of qualifying pay.
For further information, visit:
New state pension
The end of contracting-out also means the end of the two-tier state pension (basic state pension and SERPS or S2P). A new single-tier state pension is being introduced for workers who reach state pension age after 5 April 2016.
You can find more information at: